- Cravatex Brands has made a loss in Q4FY23 which has impacted Margins. This remains a concern for FY24. Likely to contribute 3% to revenue in FY24. CBL’s key priorities in CY24: integration, inventory liquidation, and improved store throughput: Key priorities for Cravatex Brands Limited (CBL) during CY24 shall include; (i) integration with MBL existing eco-system to leverage cost and operating leverage synergies, (ii) liquidation of current excess inventory and cash conversion cycle and (iii) improve store-throughput at existing outlets (currently CBL has 25 FILA EBOs).
- The management revised its store opening guidance upwards to 315 over FY22–25E (115 stores opened in FY23) from 260. It is planning to open 100 stores each (from 80 earlier) in FY24/FY25.
- The company has been on a path of rationalizing its distribution channels, including closure of the Fila stores that are currently operational. Going forward, once they re-position the brand, they would further invest in its new outlets.
- The management expects to achieve its guided gross margins of ~55%-57%, in the upcoming quarters.
- Going ahead, they anticipate certain moderation in its sales growth. In terms of profitability, they would adhere to their EBITDA and PAT guidance of ~30%-33% and ~15%-17%, respectively.
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